#18 - Monday Minute | Lot Rot Is Killing Your Profit

About this episode

In this episode, Luke and Jeff discuss the importance of turn time in maximizing profitability for independent dealerships and provide actionable insights to improve sales efficiency.

Welcome to the Monday Minute, brought to you by Collections Boot Camp with AI from Godwin Consulting — your weekly reset to lead better, think clearer, and build your independent dealership with intention. You don't make your money when you buy the car. You don't even make it when you price it. You make it when you sell it — and the faster that happens, the more efficient your entire used car dealership becomes. In this episode, Luke and Jeff break down one of the most ignored numbers in the independent dealer business: turn time. They walk through what a healthy turn looks like (1.5 is the sweet spot, around 45 days), how to calculate yours straight out of your DMS by dividing your average inventory by your average monthly sales, and why slow inventory is quietly killing your profitability. Lot rot is real — Jeff can point to two cars literally grown into the asphalt of his dealership. Aged units force discounts. Flooring fees, curtailments, and interest pile up. And every week a car sits, you're missing the chance to put something fresher and more exciting in front of a customer. Luke and Jeff dig into what's actually slowing dealers down — pricing, reconditioning delays…

People in this episode

Hosts: Jeff Watson, Luke Godwin

Topics covered

• turn time
• profitability
• used car dealership
• inventory management
• sales efficiency

Keywords

• lot rot
• turn time
• profit
• used cars
• inventory
• sales
• reconditioning

Sponsors

Collections Boot Camp, Godwin Consulting

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